This Kraken vs eToro Review
will go over the two crypto trading platforms, that allow the user to trade a variety of cryptocurrencies. With eToro, you can also trade other financial instruments like Forex, Stocks, Commodities, etc. While both platforms support major crypto coins.
However, there are pros and cons to each platform on its services. In this article we will review the trading platform, assets available to trade, payment methods, fees, support, and more. If you do like this review we would also recommend our Kraken vs Binance Review.
Founded in 2011 by Jesse Powell, Krakens platform is known for a great reputation in the crypto industry. According to the Kraken statistics, there are over 4 million clients registered. You can buy different cryptocurrencies with several payment methods. Also, the trading platform allows you to trade hundreds of crypto coins.
eToro’s platform has been operating for over a decade. Founded in 2007, the eToro platform first introduced the forex trading platform. Then eToro started to introduce more alternatives to trading platforms to its clients. eToro launched WebTrader, OpenBook, Mobile App, Stock Trading, CopyPortfolio, and Crypto Trading.
One of the main reasons for eToro’s success is the “Copy Trading” platform, which helps you copy the Pro Traders. With the copy trading platform, the user can trade crypto, stocks, commodities, or forex currency pairs by copying other traders. You need to select a trader and copy his trades and when you do that, all the trades opened by the copied trader will be traded for you too.
Kraken Trading Platform
Kraken platform allows you to buy Bitcoin, Bitcoin Cash, Ethereum, Ripple, and Litecoin. However, the trading platforms support more than 100 crypto coins to trade. The trading platform on Kraken website allows you to trade “spot exchange and “margin trading”.
With spot exchange, you can exchange one currency as XTB for example, and exchange it with EUR currency. The margin trading platforms allow you to trade cryptocurrencies with sell or buy orders. The trading platform offers leverage of up to 5x and rollover fees start from 0.02%.
Kraken doesn’t offer other financial instruments to trade such as Forex, Stocks, Commodities, etc like eToro.
eToro Trading Platform
eToro doesn’t allow the user to buy or sell cryptocurrencies like Kraken. eToro platform is focused to offer you trading on different platforms with hundreds of instruments to trade. The most used platform is the Copy Trader platform. With the Copy Trader platform, the user can copy trades from successful traders.
The trades will be opened automatically from the copied trader that you’ve chosen. With the news feed, you can use the eToro platform as a social media platform, to analyze, share, or get ideas about different trading instruments.
eToro offers 16 cryptocurrencies to trade and the supported cryptocurrencies are listed below:
Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Ethereum Classic (ETC), Ripple (XRP), Dash (DASH), Litecoin (LTC), Cardano (ADA), Iota (MIOTA), Stellar (XLM), Eos (EOS), Neo coin (NEO), Tron (TRX), Zcash (ZEC), Binance Cash (BNB), Tezos, and (XTZ).
To trade stock instruments, eToro has listed the major stocks globally. And 228 stock instruments can be traded on the eToro platform. The list of stocks includes major companies such as AMD, Facebook, EA, Microsoft, Spotify, Snapchat, Twitter, Vodafone, etc.
eToro also offers forex trading with major currency pairs. The spreads on forex currency pairs start from 2 pips. The most traded currency pairs are EUR/USD, USD/JPY, GBP/USD, USD/CAD, GBP/JPY.
With Commodities trading you have access to 14 commodities assets: Oil, Gold, Silver, Copper, Natgas, Platinum, Palladium, Sugar, Cotton, Cocoa, Wheat, Aluminium, Nicker, and Crude Oil.
Fees & Deposit Methods
Kraken Fees & Deposit Method
This Kraken vs eToro review will also explain supported deposit and withdrawal methods that are available depending on the user’s country. Kraken offers different payment methods for International, European, American, Japanese, and Canadian clients.
For clients from the US, a small deposit of $20 USD is required to buy or trade cryptocurrencies. The deposit process takes 1 to 5 business days depending on the deposit method. The supported deposit method for US clients is only through FedWire.
European clients have a smaller deposit amount required to buy or trade crypto. With 1 EUR deposit, the European users can deposit funds and the process of deposit can take from 1 day to 5 business days. European clients can fund the account through SEPA bank transfer and Swift Wire Transfer.
Canadian clients can deposit a small amount of 20 CAD. Fees on some payment methods are free, and in some other payment methods, 1.25 CAD + 0.25% fee is charged. For Canadian clients, there are three deposit payment methods: Wire Transfer, Cash/Debit (Canada Post), and InterFIN.
Japanese clients can deposit with a minimum amount of 15,000 JPY. There are no fees charged for deposit and the processing time takes 3-5 business days. Japanese clients can deposit only with Swift Wire Transfer. If you need to learn more about fees, payment methods, etc, visit the link here.
eToro Fees & Deposit Method
eToro doesn’t charge any fees on deposit payment methods. For withdrawal payment method a fee of $5 USD is charged to the client’s account balance. And the minimum withdrawal amount is $30.
The minimum deposit amount required to start trading, it depends on the user’s country. Users from Australia and the USA, the minimum first-time deposit is $50.
For residents of Algeria, the Maldives, and Venezuela, the minimum first-time deposit is $5,000.
The supported payment method for deposit and withdrawal are listed below:
1. Deposit and withdrawal with Credit/Debit Cards supports (Visa, MasterCard, Diners, Visa Electron and Maestro.) The processing time is instant and the maximum amount to deposit is $40,000. Credit and Debit Card payment methods are available for all international users.
2. The deposit and withdrawals with Paypal, Skrill, and Neteller are confirmed instantly and the maximum amount for withdraw is $10,000. The electronic payments are available to all users.
3. With the Rapid Transfer method, you can deposit max $5,500 and the deposit process is instant. Withdrawal with Rapid Transfer is not available and you can use the Rapid Transfer on more than 170 banks.
4. Klarna / Sofort Banking process is instant and the maximum deposit amount is $30,000. Klarna / Sofort Banking is available only for users from Germany, Austria, Netherlands, Switzerland, Italy, Spain, Belgium, and Poland.
5. The Wire Transfer can take 4-7 days, it’s international and there’s no limit for deposit.
6. The online banking process for some Asian countries is instant and the maximum amount of deposit allowed is $10,000. Only the users from the following countries can use the online banking method: Malaysia, Indonesia, Thailand, Vietnam, and the Philippines.
7. China UnionPay payment method is available only for Chinese users. The payment process is instant and the maximum amount for deposit is $7,000.
If you need to learn more about payment methods, etc, visit the link here.
For verification of the user’s identity, Kraken uses the know-your-costumer (KYC) verification system. Kraken offers 3 account types, “Starter”, “Intermediate” and the “Pro” account type. Each account type has different limits on deposits, withdrawals, trading platforms, etc.
The Starter account type allows deposit and withdraws with digital assets only. With the Starter account you can also trade and buy and sell on the trading platform. There’s no limit on deposits, but for withdrawals there’s a $5,000 limit daily. To verify the account, you need to sign up on the Kraken website with your full name, email address, phone number, and residential address. The verification process for the Starter account can take 1 to 60 minutes.
Intermediate level, offers deposits, withdrawals, and trading with fiat currencies. You will have a daily limit of $100,000 for deposits, and a withdrawal limit of $500,000 daily. To verify the account for the Intermediate level, you need to provide an ID, Proof of Residence, Occupation, and ID Confirmation Photo. Verification time for the Intermediate account takes 1 to 6 hours.
The Pro level account, has a $10 million daily limit for deposits and withdrawals. Pro account type, offers more personalized funding and higher-margin limits. You will have access to the “dark pool” feature, which hides your buy or sell order details on the market. To upgrade to the Pro level, you need to provide a financial statement and Anti-Money Laundering (AML) verification. The verification process can take 1 to 5 days.
eToro user with an unverified account has a limit of $2,250 on the total deposit amount. An unverified user can deposit only, and to start trading or withdraw, the verification of the identity is required.
The verification process requires proof of identity such as Passport, Driver’s license, ID. eToro requires proof of the address to verify your account. Also, a phone number is needed to verify your account. The verification process can take days and the user can complete the verification with the eToro app on smartphones.
The proof of address document should be no older than 6 months. The following documents can be used to verify your address:
Bank Statement, Credit Card Statement, Electricity, Water or Gas bill, Council Tax bill, Tax letter or bill House Rental Official Agreement – Issued from a Rental Agent, Letter from the employer, Letter from your local municipality Phone bill, or an Internet bill.
Kraken users can contact the support with the live chat, that’s available 24/7. You can also use the email support, by creating a ticket on the support page. At the moment, there’s no support offered via phone number.
The FAQ page on the Kraken websites provided hundreds of helpful content. In total there are 14 menu categories and are separated so the user can access the helpful content more easily.
eToro live chat team is available 24 hours a day from Monday to Friday. But during the weekend, the live chat support is unavailable. However, the user can contact the support team via the ticket system. Support via phone number is not available on eToro too. To learn more about the eToro platform and the services, you can use the Help page on the site.
Kraken Referral Program
Kraken affiliate programs offer a commission for each referred client. To receive a commission, the referred client needs to fund his account. The commission is given to you through the fees when referred to user trades, or exchange crypto coins.
The signup process is easy, as you can get accepted instantly on the affiliate program. Kraken offers marketing materials such as pictures to help you get more referrals. The payments are processed through a bank account and you can request a withdrawal once a month.
eToro Referral Program
According to the eToro partner program, a total commission of more than $80 million has been paid to affiliate users. You can join the affiliate program and receive a commission for each referred client. eToro gives you a commission when the referred user deposits on the eToro website.
Also, you can try the Cost Per Action (CPA) program, which gives you an onetime amount of $200 when the referred user funds his account. The user can use other affiliate programs such as the “Second Tier Referral Program” or “Popular Investors” to earn income as a popular investor.
Both platforms offer the major cryptocurrencies to trade. Also, the user-interface (UI) on both platforms is very easy to use. And a beginner in crypto trading can get used to it very quickly. But unfortunately eToro doesn’t offer cryptocurrencies to buy on its platform Kraken.
But, you can trade major crypto coins and other trading instruments such as Forex, Stocks, Commodities.
Kraken is more suited for crypto traders who aren’t familiar with other financial markets. With eToro, you can trade different financial markets, and the Copy Trader system, which makes the eToro platform even more unique. However we would recommend Kraken over eToro but overall we hope you enjoyed this Kraken vs eToro Review.
eToro Disclaimer – Transacting in virtual currencies is subject to various risks, such as price volatility, and is therefore not suitable for everyone. Your capital is at risk.
Images via shutterstock, Writer Behar H.